GM and Gotion Joint Venture Confirmed?

About a year and a half ago, a story broke that Gotion, a Chinese battery maker specializing in lithium iron phosphate (LFP) batteries for automotive and grid-tie use was partnering with a major, unnamed U.S. automaker. The plan was to provide 200 GWh of battery cells from 2023 to 2028, which that automaker would use for their vehicles and other grid-tie energy storage applications.

Hello everyone and welcome to another news coulomb video i’m uh just up here checking out uh our local lake uh seeing the fire damage and maybe do a little bit of fishing while i’m up here after work but i didn’t have a lot of time uh to cover this and in fact i don’t think i did an official video on it which is unfortunate because i’m calling it now uh i think

The gm goshen partnership is pretty much 100 certified at this point and if you don’t know what i’m referring to uh about a year ago maybe a little bit more than that about a year and a half ago goshen a battery producer out of china announced that they were working with a u.s automaker traded on the public stock exchange at that time which is a very important

Point because at that point the only major automakers trading on the u.s stock market were ford gm and tesla lucid hadn’t done their ipo yet rivian hadn’t done their ipo yet and so basically once that was announced what what goshen announced is that they would be delivering 200 gigawatt hours of lithium-ion phosphate batteries to that unnamed u.s automaker for auto

Manufacturing and possible grid tie storage and other applications a sundry applications and 200 gigawatt hours is a lot right that’s enough that if you were averaging 80 kilowatt hours per battery pack significantly more than what’s in the bolt ev about the same as say the tesla model 3 right or tesla model y that 80 kilowatt hour battery pack you could make 2.5

Million of them with those 200 gigawatt hours of battery cells that goshen was going to be delivering now they weren’t delivering it all at once it wasn’t just dumping it into the market but they were delivering them over a span i think of like four years five years something like that from i think 2000 and 23 or 2024 through like 2028 something like that that’s a

Lot of batteries though regardless and then with it would be a joint partnership now when that news was announced all of the tesla fans all of them just jumped on it goshen and tesla partnering goshen and tesla partnering and i kept saying hey look this actually might be more likely gm right it could be ford but it’s more likely gm and the reason i was saying that

Of all of the u.s automakers trading on the u.s stock exchange at that time the major automakers only one was already doing business with goshen in china and that was gm now the counterpoint was oh well gm1 isn’t interested in building that many evs they’ve shown no interest in lfp whereas you know tesla on their battery day was talking about nickel batteries and

Iron batteries all of that well tesla was very open about whose technology they were relying on right they who they were licensing technology from oh we’re going with catl we’re going with panasonic we’re going with all of these other companies that they were working with or whose technology that they were using or incorporating into their batteries um so why

Not mention goshen at that time ford the same thing uh ford has shown an inclination toward lfp but that actually came later and in fact i think this goshen deal might have prompted for it because one they knew they needed larger battery supplies to um you know they’re sort of balancing different chemistries but i think also they looked at that contract and said

This is a major u.s automaker getting 2.5 million evs worth of batteries from this company plus a joint venture where goshen is bringing manufacturing to the united states they they’re like well we know it’s not us so it has to be someone else so then all of a sudden you see ford uh really pushing their contracts for lfp and joint partnerships in the united states

As well so ford has been doing a very good job also of just sort of following gm’s lead and evs while crediting tesla and that does two things in ford’s benefit it one follows what i consider one of the better eevee strategies the only thing that’s really left for them to do following gm is putting a large chunk of funding into the public charging infrastructure

I really think that they should consider partnering with evgo as well but uh also it gets the tesla fans off their back by vw has been trying this right by speaking nicely about elon it gets the tesla fans sort of uh backing off on vw so they can kind of do their own thing it’s worked wonderfully for ford also so they get to you know start doing their dealership

Conversion the same sort of deal that a gm handed out to their cadillac dealerships those sorts of things so ford is really sort of following a gm strategy in this and that’s not a bad thing right i don’t consider this a negative at all again also i don’t mean this to take credit away from ford ford is doing a great job and i think they’re following a strategy

That makes maybe the most logical sense for an established u.s automaker again though then you’d say well if tesla and a ford were both just open about who they were partnering with and who they were buying lfp battery cells from or whatnot why not gm well keep in mind at the time that this deal was announced gm was embroiled with a big issue with lg um and i

Guess now lg energy solutions with the chevrolet volt ev battery pack and two things came out of that one i think it was a wake-up call for gm because their joint venture in ultium is with uh lg so right now there’s sort of a one-trick pony in terms of who they’re getting their cells from battery cells from for u.s automakers so that’s already that single point

Of failure if that business partnership dissolves something happens to lg you know gm is up a creek in terms of what their established supply chains and plans are for ev production so it just made sense to broaden their scope but lg has kind of shown a tendency to push back on partners who have started to try to partner with other battery producers and and we’ve

Seen some of the the negativity that’s come out of algae so i could already see that but again they’re in the middle of this heated business negotiation so gm recognizes that they need an additional battery supplier that one isn’t good enough they realize that the nickel batteries used in the chevrolet bull tv and the nickel batteries that are used in their ncma

Chemistry for the first generation ultim cells basically most automotive batteries in the united states are highly volatile highly flammable and it’s a risk right whereas lfp the electrolyte is flammable but you’re not going to have the same thermal runaways it’s nowhere near as dangerous and so they also recognized that and then like i said so they they are also

Not free to really talk about it because of this working out this joint venture with lg well at this point they’re so far into that joint venture with lg that backing out of ultium would irreparably hurt lg and then lg is still on the hook for i mean my battery still has not been replaced yet right i have a 2017 chevrolet bull tv with over 155 000 miles on the

Original battery it still hasn’t been replaced lg is still on the hook for replacing a bunch of batteries almost two billion dollars that they’re having to pay gm basically to refund them or recoup them for the cost of this whole recall so lg is already on a sort of tightrope plus they’re already building what the third altium factory with plans already in place

For the fourth ultium factory or establishing so lg is already committed right they’re not going to back out of this joint venture so at this point gm is free to say oh yeah by the way fifth factory from a joint venture now being built in big rapids by goshen a partner that we’ve been working with in china and now they’re bringing their lfp cell manufacturing to

The united states those vehicles are still going to be eligible for all that new federal tax credit all the federal tax incentives and it gives them really cheap really safe batteries that are going to allow them to keep manufacturing entry-level vehicles like the equinox ev uh the maybe the base blazer ev maybe bringing back the chevrolet bolt ev or re-badging

It or renaming it in some way so this makes sense on so many levels for gm and again when you say oh gm has no need for grid tight energy storage that’s also not true one of the technologies that gm is really involved in is hydrogen fuel cell technology they’re hydrotech is one of the premier hydrogen fuel cells in the world and they probably logged more testing

Miles on their equinox hydrogen fuel cell vehicles than most other automakers have done in testing of hydrogen fuel cells and so they already have these fuel cells that they’ve been also using for grid tie possible off-grid charging locations these uh hydrogen fuel cells when they did their gmc hummer ev event they actually had those hydrocheck i think they call

Them mpg fuel cell arrays with a 150 kilowatt charger hooked up that’s what they were using to charge up their gmc hummer evs at that event so gm has need for these lfp batteries as grid tie or off-grid energy solutions as well and then the fact is like i mentioned this new plant basically goshen has now spilled the beans it’s a their joint venture partnership

Is in big rapids just north of grand rapids and uh michigan if you look at the map of michigan that’s like dead center with a bunch of uh different gm assembly facilities and assembly plants and automotive plants just kind of built in a ring around it you can’t pick a better location for a battery cell plant that’s going to be supplying these different gm assembly

Plants so i i have to call it i was right the the tesla fans were wrong it’s a gm goshen battery deal joint venture we’re probably even going to hear this maybe folded under the ultium brand or some ultimate adjacent remember they were very clear ultium is chemistry agnostic that means that they can use the ses solid lithium metal battery cells they can use ncma a

Chemistry they can use older ncm chemistry and they can use lfp chemistry or they can use any other chemistry that happens to come to market that makes sense for an electric vehicle so i’d love to hear what you think did you see this coming uh have you been pushing back on all of the all of the fans proclaiming victory because there’s now an additional 200 gigawatt

Hours of lfp battery capacity going to their favorite automaker whoever that might be if you enjoyed this video please like and subscribe it really helps out the channel and uh thank you for watching and i gotta get to the lake

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GM and Gotion Joint Venture Confirmed? By News Coulomb